Grain Report Friday - 25th October
What price do you want for your grain?
Overnight moves in international markets and yesterday's actual traded prices across Australia are below to help you determine your price. If you need to change your offer price, simply edit it before market open.
Grain markets were firm in overnight trade under similar influences – lingering new crop weather concerns and improved US export business (which we have been expecting to spark a move higher in prices).
The 7-day forecast has some rain for Russia, US Plains and lots for Brazil.
US weekly wheat exports were 533,000 mt and soybeans 2.15mt both at higher end of expectations while corn at 3.6mt was above the top end of expectations.
Corn cash export bids have been quietly rising as Black Sea production was clipped by a hot and dry finish and dryness across South America is expected to impact production. Brazilian and Argentine corn prices have risen by US $9/mt and US $20/mt respectively, while Ukraine corn is up $18/mt. Dryness in South America is causing logistical issues with barge freight on the Amazon and Parana Rivers – I’m wondering whether this is responsible for the spike in US corn business?
Canola prices marched forward again. The Chinese Government seems to have told its traders to buy Canadian canola prior to possible Chinese import restrictions. Also, yesterday palm oil prices hit 2 year highs on decreased production across South East Asia. This market can be fickle and once China stops buying, prices will be under pressure. It’s a scale up selling opportunity.
$AUD 66.5USc held down by a stronger $US as odds of a Trump presidency increase.
BOM forecasts no rain for the next 8 days. This will likely pressure the local basis as harvest will progress rapidly. Temperatures low-30’s in Qld down to mid-20’s across VIC this week.
Harvest is in full swing across northern and western areas and just starting in the South. Chickpea yields disappointing across South QLD but enormous cereal yields are being reported across North NSW from Walgett through to Moree (5-6 mt/ha common but odd reports of up to 8 mt/ha).
24/25 Best Bids 24/10
Wheat APW1 $372/mt Kwinana (n/c), $349/mt Geelong (n/c)
Feed barley $321/mt Kwinana (+1), $315/mt Geelong (-2). VIC barley price down another $2/mt, as VIC prices move back towards export parity.
Canola non-GM $850/mt (+8) and GM $750/mt (n/c) Kwinana, non-GM $780/mt (n/c) and GM $725/mt Geelong (n/c)
Clear Grain Exchange (CGX) Open Market Call
Harvest pressure on cereals, canola prices should be higher.
For further market commentary please contact the CGX team on 1800 000 410
CGX now own and operate the igrain market for grain stored on-farm
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